1 Broader Horizons — November 2016 BROADER HORIZONS www.rsis.edu.sg November 2016 A Monthly Maritime Bulletin and Perspectives of the Maritime Security Programme at the S. Rajaratnam School of International Studies Featured MSP Perspectives: MSP Perspectives: For Navies – A Hard Time Ahead? — p. 4 Naval Development and Policy: China’s Maritime Militia a Growing Concern — p. 5 Maritime Safety and Security: Japan, China rekindle defense talks, seek maritime security — p. 7 Shipping, Ports, and the Maritime Economy: Maersk shares sink as shipping industry woes hurt profits — p. 9 For Navies – A Hard Time Ahead? — p. 4 By Geoffrey Till Wikimedia Commons
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1 Broader Horizons — November 2016
BROADER HORIZONS
www.rsis.edu.sg November 2016
A Monthly Maritime Bulletin and Perspectives of the Maritime Security Programme at the S. Rajaratnam School of International Studies
The collapse of Hanjin, the world's 7th largest shipping-container carrier, has been widely cited as evidence of a significant slowdown, even contraction, in world trade. Hanjin based their investment plans on an assumption that world trade would continue to grow at the historical rates it has achieved over the past several decades, but it has not and now many of the world's containers and shipping stand idle. Furthermore, the UK 'Brexit' vote, the election of President-elect Trump and now the resignation of Italy's Prime Minister all point to a rise in protectionist sentiment, especially on the part of those who consider themselves victims of globalisation. This too will make an increase in sea-based trade less likely. The possible naval consequences of these now much debated topics, however, have not been much considered, but in the long run they could be considerable. Globalisation was supposed to usher in an age of peace and plenty, on the basis that the more countries trade, the less they fight. This provided the world's navies with an incentive, even a requirement, to cooperate with each other against threats to the good order at sea upon which depended the security of the sea-based trading system which in turn seemed to deliver both peace and prosperity. In grappling with threats such as piracy off the coat of Malacca or in Southeast Asian waters, with drugs and people-smuggling and with international terrorism these navies not only answered an objective operational need but also found that it improved the level of understanding between them, and played a part in assuring reasonably harmonious relations between the countries they represented. Put crudely the more the focus of their concern was on
such 'soft' security issues the less severe did the 'hard' issues begin to seem. But now, with the growth of protectionism, with the inevitable increase in tension in trade relations that this makes almost inevitable (and there are some who even talk loosely of trade wars and win-lose situations replacing win-win ones) the cooperative nature of multinational naval operations seems likely to diminish. Instead, we should perhaps anticipate a harder edge to naval activity and to naval development around the world, rather more akin to the world of the early 20th Century, than to the last few decades in which a common interest in globalisation seemed to bind everyone together. Of course, it is easy to exaggerate both the scale of this retreat from a sense of global economic community and the reduction in the scale of sea-based trade on which it has hitherto depended. No-one is yet saying that sea-based trade has ceased to be important. It is however perfectly clear that the trading system is now under serious pressure and that this is a new reality to which naval planners will have to react. The nature of naval procurement around the world and how the resultant operational activity falls in the cooperative/competitive spectrum over the next few years will tell us a good deal about the future we should expect for the rest of the 21st Century.
5 Broader Horizons — November 2016
NAVAL DEVELOPMENT AND POLICY
CHINA | 21 NOVEMBER | DEFENSE NEWS China’s Maritime Militia a Growing Concern Near the top of US Pacific Fleet commander Adm. Scott Swift’s concerns is China’s People’s Liberation Army Navy (PLAN), and close behind is the country’s burgeoning Coast Guard.
Full Report
SOUTH KOREA-UNITED STATES | 3 NOVEMBER | KBS WORLD NEWS
Navy, Marines Conduct Drill to Evacuate N. Korean Refugees
South Korea’s Navy and Marine Corps have conducted for the first time a drill to accommodate North Koreans who will likely flood into South Korea in the event a war breaks out on the Korean Peninsula.
Full Report
NORTH KOREA | 8 NOVEMBER | NK NEWS
Exclusive: New low-visibility corvette spotted in North Korea
A new modern-style corvette with low-observable radar characteristics has been spotted in North Korea’s northeastern port of Najin in Rason, high-resolution photos obtained exclusively by NK Pro have revealed.
Full Report
THE PHILIPPINES-UNITED STATES | 8 NOVEMBER | UPDATE.PH
Balikatan and EDCA to continue, PHIBLEX and CARAT scrapped
The yearly Philippines-United States Balikatan military exercises will continue but Amphibious Landing Exercise (PHIBLEX) and Cooperation Afloat Readiness and Training (CARAT) with the US Navy will be discontinued, this was revealed by National Defense Secretary Delfin Lorenzana on Monday at Malacañang.
Full Report
JAPAN | 11 NOVEMBER | THE ASAHI SHIMBUN
State-of-the-art MSDF patrol jet joins first joint drill overseas Japan's cutting-edge patrol aircraft is to take part in an overseas military exercise for the first time, representing one of seven nations training in New Zealand waters.
Bangladesh gets first submarines 'Nabajatra', 'Joyjatra' from China
The submarines, christened ‘Nabajatra’ and ‘Joyjatra’, will be included in the Bangladesh Navy's fleet once
they arrive. Full Report
CHINA | 14 NOVEMBER | GLOBAL TIMES
China’s first aircraft carrier the Liaoning now ‘combat ready’
China's first aircraft carrier, the Liaoning recently left its shipyard in Qingdao, East China's Shandong Province, to start a new training mission, as the carrier's political commissar confirmed it is constantly prepared to fight against enemies.
Pakistan on Tuesday unveiled a very low frequency (VLF) communication facility that will enable it to communicate with deployed submarines.
Full Report
INDIA-PAKISTAN | 18 NOVEMBER | REUTERS
Pakistan navy 'pushed' Indian submarine clear of its waters
The Pakistani navy detected an Indian submarine off the Pakistani coast and prevented it from entering its waters, it said in a statement on Friday, prompting a denial by India as tension between the nuclear-armed rivals simmers.
Full Report
AUSTRALIA | 18 NOVEMBER | AIR FORCE-TECHNOLOGY.COM RAAF welcomes its first P-8A Poseidon aircraft
The Royal Australian Air Force’s (RAAF) first P-8A Poseidon aircraft has arrived, it will be used to help Australia enhance its border and maritime security.
Full Report
RUSSIA | 22 NOVEMBER | THE JAPAN TIMES
Russia deploys anti-ship missiles on disputed isles off Hokkaido
The Russian Navy’s Pacific Fleet has deployed state-of-the-art anti-ship missile systems on two of the islands off Hokkaido claimed by Japan, the fleet’s newspaper reported recently.
Full Report
UNITED STATES | 24 NOVEMBER | CNN
New cutting-edge $4B Navy destroyer malfunctions in Panama Canal
Just weeks after its debut, the Navy's most technologically advanced destroyer, the USS Zumwalt, has been put out of action due to engineering problems that occurred while it was crossing the Panama Canal.
Full Report
INDONESIA | 25 NOVEMBER | JAKARTA GLOBE
Navy Welcomes Airbus Helicopter Delivery Ahead of Schedule
The Ministry of Defense has received the first three of an 11 unit order of AS565 MBD Panther helicopters in Marignane, France, ahead of a relaunch of three anti-submarine helicopter squadrons for the Indonesian Navy.
Full Report
CHINA | 30 NOVEMBER | GLOBAL TIMES
China's facilities in Djibouti not for military expansion: spokesperson
China's support facility project in the east African nation Djibouti is not military expansion, a spokesperson with the Ministry of Defense said Wednesday.
Full Report
TAIWAN | 30 NOVEMBER | TAIPEI TIMES
Rescue exercise staged near Itu Aba
A multi-agency humanitarian rescue drill was held yesterday in waters near Itu Aba Island (Taiping Island) in the South China Sea, the first of its kind since President Tsai Ing-wen spoke of the government’s intention to turn the island into a base for humanitarian assistance.
CHINA-JAPAN | 29 NOVEMBER | NIKKEI ASIAN REVIEW Japan, China rekindle defense talks, seek maritime security Japanese and Chinese senior diplomats and defense officials appear to have agreed Monday in Beijing to accelerate talks on a maritime communication system as the two nations held their first security dialogue since March 2015.
Full Report
MALAYSIA-INDONESIA | 2 NOVEMBER | MARITIME HERALD
Dozens of passengers died after wooden boat sank in Malacca Strait
Coastal passenger wooden boat sank in Malacca Strait near Batam, Indonesia.
Full Report
INDIA-SRI LANKA | 6 NOVEMBER | INDIAN EXPRESS
India, Sri Lanka to set up hotline to deal with fishermen entering each other’s territorial waters
In a bid to effectively deal with fishermen entering each other’s territorial waters, India and Sri Lanka Saturday decided to set up a hotline between the coast guards of the two countries.
Full Report
MALAYSIA | 6 NOVEMBER | THE STAR ONLINE
Fishermen want navy to safeguard Sabah waters
Fishermen in the east coast are urging the Government to hand over duties of safeguarding Sabah waters to the navy in view of the continuous kidnappings and cross-border crime in the area.
Full Report
INDONESIA-MALAYSIA | 8 NOVEMBER | ANTARA NEWS
Indonesia urges Malaysia to ensure its fishermen’s safety
Indonesia has urged Malaysian authorities to ensure the safety of its fishermen, following the kidnapping of two Indonesian fishermen working for Malaysian employers in its waters close to the Philippines border.
S. Korea specifies guidelines on illegal fishing crackdowns
South Korea's government on Tuesday announced guidelines on the use of weapons by the Coast Guard during crackdowns on foreign boats illegally fishing in the country's exclusive economic zone (EEZ).
Full Report
INDIAN OCEAN REGION | 8 NOVEMBER | REUTERS
Ships more at risk after first Somali pirate attack in years: officials
Merchant vessels sailing through busy shipping lanes between Somalia and Yemen may be underestimating the risk of piracy and terrorism following two attempted attacks last month, maritime officials say.
Full Report
MALAYSIA-THE PHILIPPINES | 11 NOVEMBER | MANILA BULLETIN
PH–Malaysia joint sea border patrols eyed
President Rodrigo Duterte has given Malaysian forces the green light to pursue pirates into Philippine waters in a bid to stamp out kidnapping and other security threats in the two countries’ sea borders, particularly by Abu Sayyaf.
Full Report
AUSTRALIA | 14 NOVEMBER | THE SYDNEY MORNING HERALD
Huge maritime operation ahead of moves to resettle refugees to US
Australia has deployed its largest maritime surveillance operation since World War II, as the Turnbull Government seeks to deter people smugglers from taking advantage of its "one-off" refugee resettlement deal with the United States.
Full Report NEW ZEALAND | 17 NOVEMBER | NEW ZEALAND HERALD
International warships to help New Zealand quake relief
Warships from Australia, Canada and the United States have arrived in Kaikoura to help with disaster relief efforts following this week's earthquakes.
Full Report PAKISTAN | 16 NOVEMBER | DAWN
CPEC ships being guarded by navy vessels
Two ships carrying Chinese cargo left the Gwadar port under the protection of Pakistan Navy ships for the Middle East and Africa, according to a statement
issued by the navy on Tuesday. Full Report
INDONESIA-MALAYSIA-THE PHILIPPINES | 18 NOVEMBER | THE STAR ONLINE
Indonesia, Malaysia, Philippines unite against Abu Sayyaf Indonesia, Malaysia and the Philippines have agreed to initiate joint army training to advance efforts to secure the Sulu Sea from rampant piracy.
Full Report
CHINA-INDONESIA | 25 NOVEMBER | ANTARA NEWS
Indonesian, Chinese coast guards to step up legal enforcement cooperation
Indonesia’s Maritime Security Coordinating Board (Bakamla) and Chinese Coast Guard have agreed to set up cooperation in maritime legal enforcement.
Full Report
NORTH KOREA | 25 NOVEMBER | NK NEWS
IMO adopts statement regarding North Korean missile launches
The International Maritime Organization (IMO) has issued a statement expressing its “grave concerns” over the lack of forewarning provided by North Korea when launching missiles, a statement shared with NK News on Friday shows.
Full Report
THE PHILIPPINES-UNITED STATES | 30 NOVEMBER | THE PHILIPPINE STAR
US shifts aid from anti-drug operations to maritime security
The United States has switched its police assistance program in the Philippines from drug control to maritime security in the light of human rights violations in the Duterte administration’s war on drugs.
DENMARK | 2 NOVEMBER | BLOOMBERG Maersk shares sink as shipping industry woes hurt profits A.P. Moller-Maersk A/S, owner of the world’s largest container line, reported a 43 percent decline in third-quarter profit as the shipping industry continues to suffer from overcapacity.
Full Report
DUBAI | 1 NOVEMBER | HELLENIC SHIPPING NEWS
Dubai Maritime Summit opens tomorrow to discuss innovation, maritime arbitration and human capital investment
Under patronage of H.H. Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, the Dubai Maritime Summit will launch tomorrow (Wednesday, November 2, 2016) to discuss the present and future of world maritime navigation, with a special focus on best practices in maritime innovation, arbitration and human capital investment.
Full Report
JAPAN | 3 NOVEMBER | LLOYD’S LIST
Come together at once
In container shipping, further consolidation is ongoing. Japanese major lines Mitsui OSK Lines, Nippon Yusen Kaisha and K Line have announced they will merge their box operations. Full Report
WORLD | 4 NOVEMBER | HELLENIC SHIPPING NEWS
OCEAN Alliance sets out network
Members of the OCEAN Alliance, COSCO Container Lines, CMA CGM, Evergreen Line and Orient Overseas Container Line, today signed a document entitled the Day One Product, which sets out the proposed OCEAN Alliance’s network, including port rotation for each service loop.
Full Report
UNITED KINGDOM | 7 NOVEMBER | HELLENIC SHIPPING NEWS
Irish port to be European shipping hub after Brexit
The Port of Foynes is to become Europe’s gateway to the US under a radical new Government initiative aimed at capitalising on Britain’s decision to leave the EU.
The container shipping companies that make up THE Alliance have announced details of their proposed product starting from April 2017.
Full Report
SOUTH KOREA | 11 NOVEMBER | SEATRADE MARITIME NEWS
Hyundai Merchant Marine and Korea Line bid for Hanjin Shipping's Asia - US business
Hyundai Merchant Marine (HMM) and Korea Line have submitted final bids for the Asia – US business of bankrupt Hanjin Shipping.
Full Report CHINA-PAKISTAN | 12 NOVEMBER | BLOOMBERG
Chinese Ship Opens New Trade Route Via Pakistani Port
Pakistan's top civilian and military leaders traveled to the country's southwest on Sunday to open a new international trade route by seeing off a Chinese ship that's exporting goods to the Middle East and Africa from the newly built Gwadar port.
Full Report
THE PHILIPPINES | 17 NOVEMBER | THE MARITIME EXECUTVE
Cebu port expansion moves ahead
The New Cebu International Container Port has won the approval of the Philippine government, and work on the $200 million container terminal is set to begin in the third quarter of 2017.
Full Report
SRI LANKA | 18 NOVEMBER | SHIP&BUNKER
Sri Lanka to lease port of Hambantota to investors
Sri Lankan Prime Minister Ranil Wickremesinghe says
the country will lease the Port of Hambantota to investors, rather than selling it to China or any other country, as has been suggested in the media, Sri Lankan media reports.
Full Report
VIETNAM | 18 NOVEMBER | REUTERS
Foreign firms to build $315 mln Vietnam port complex
Vietnam has approved a foreign consortium's plan to invest around $315 million in a seaport and industrial zone complex in northern Quang Ninh province, the government said on Saturday.
Full Report
THE PHILIPPINES | 20 NOVEMBER | MANILA BULLETIN
P450-M port to rise in Spratlys
The Philippine government will be building a P450-million port in the Spratly Islands amid warming ties with our Asian neighbors, especially the People’s Republic of China, under the Duterte administration.
Full Report
MALAYSIA | 23 NOVEMBER | REUTERS
Oil spice: With $3 billion port, Malacca eyes slice of shipping giant Singapore's pie
The Malaysian state is reclaiming land along the Straits of Malacca to build a port that can handle the biggest tankers on the planet.
Full Report
DENMARK-GERMANY | 28 NOVEMBER | THE WALL STREET JOURNAL
Maersk line looking to buy German container shipping operator Hamburg Süd
The shipping arm of Danish conglomerate A.P. Moeller-Maersk A/S is looking to buy German peer Hamburg Süd, people with knowledge of the matter said, a deal that would help Maersk Line boost its presence in global trade with Latin America.
Full Report
EUROPE | 29 NOVEMBER | COINDESK
Europe's Biggest Shipping Port Tests Blockchain Logistics
The operator of Europe’s largest shipping port is taking part in a new blockchain consortium focused on logistics.
